COVID-19: Refocusing Multi-Unit Market Refinance to Support Investments in Housing
CHMC is implementing a new restriction on use of funds as a condition of insurance for market refinance loans. The restriction ensures investments focus on the supply and preservation of multi-unit residential housing in the immediate term.
Effective immediately, refinance proceeds must be used for a permitted purpose in relation to residential housing.
This could include one or more of the following:
- capital repairs/improvements (including for increased energy efficiency and accessibility), or
- securing permanent financing (take-out financing to pay off a short-term construction loan).
Certain other uses may be permitted on a case-by-case basis; however equity take-out or distributions to equity holders will not be permitted.